Property Backed Loan

Who offers property backed loans in SA?

There are over 3 million small and medium-sized enterprises (SMEs) in South Africa, and although each of these businesses faces its own set of challenges, a lack of access to funding remains a common stumbling block.  

SMEs often find it difficult to navigate the complex world of business lending, and in most cases want to know if they even qualify for a business loan, and what their funding options are. As a business owner, you don’t want to spend heaps of time worrying about how you’ll be making ends meet, instead that energy can be focused on helping your business grow and thrive.  

If your business is suffering from a temporary cash-flow shortage, then it’s time to look at your assets, and use your property as security for a business loan. Doing this will allow you to free up the equity locked up in un-bonded property to secure fast and flexible credit.  

Not sure where to start with choosing the right lender to suit your business’ needs? Let’s take a look at the Top 10 property backed finance lenders in South Africa, starting with an overview:   

Property Backed Finance Lenders in South Africa

What is a property backed loan?

A property-backed loan is a type of secured loan where the property is used as security. This is ideal for a business with a temporary cash-flow shortage that wants to take a loan against property. It allows you to free up the equity locked up in un-bonded property to secure fast and flexible credit.  

The loan facility can be structured in a few ways depending on the lender’s product offering. Some examples include:

  1. As a term loan, where the borrowed amount is then repaid in equal instalments over a fixed period of time
  1. As a revolving loan facility where an overdraft facility is provided and you service the interest portion of monies borrowed on a monthly basis
  1. No monthly repayments are required because interest and capital are repaid together at the end of the term. This structure is very attractive if you are working on a deal which only receives payment on conclusion.

Why is it important to shop around for property backed finance?  

Much like any financial product, property backed finance is a big decision to be making. One that comes with great reward, risk and responsibility, so you need to be sure about choosing the right lender. If you apply for property backed finance through FundingHub, we will ensure you are matched with the right lenders to suit your financial needs.  

Top 10 Property Secured Lenders in South Africa  

Geddes Capital

The team at Geddes Capital aim to raise the bar when it comes to business finance by striving to remove anything that stands between you and a prosperous future. They pride themselves on transparent terms, a fast and simple application process and great customer service. Geddes Capital understands the needs of SMEs, and that opportunities don’t wait around forever. Their team has over 100 years of combined industry experience, and with this comes the knowledge on how to make any business’s dreams come to fruition. Geddes Capital are firm believers that your success is their success, and that’s why they really get behind understanding your business’s needs.  

They will work closely with customers, which includes understanding what assets can be used as collateral against a loan. They offer access to short-term secured funding, where loans range between R500k and R7 million per deal. To qualify for a property backed loan with Geddes Capital there are some basic requirements: you’ll need to have been actively trading for over one year and have a minimum yearly turnover of R2 million.  

CapX Finance

Since its establishment in 1999, CapX Finance has been focused on providing speedy, simple and short-term finance to SMEs. They are experienced alternative financiers, who know how to deal with small business owners, who are not large enough to receive special attention from traditional banks. Their team are passionate about business, people and finance – this coupled with their cutting edge technology enables them to provide quick and efficient service. This ensures that business clients can receive their funding in the shortest possible time. A secured loan from CapX Finance means easy access to equity locked up in a fixed property, quickly.

In order to qualify for a property backed business loan with CapX Finance, your property must be worth more than R625 000 and it must be unbonded. The loan amount that they can assist with ranges from R250k to R10 million, with repayment periods between 6-12 months. CapX Finance will be able to offer a business loan against a paid-up property for up to 40% of the value of the property.  

Spartan Finance

Since opening its doors in 1981, Spartan Finance has been backing entrepreneurs and building our economy along the way. With eyes only for small-medium sized businesses, they are one of the top independent alternative lenders in South Africa. They are determined to offer unique and customised business finance for SMEs. They are proud to say that their style is more entrepreneurial than corporate because they really want to understand the needs of business owners. Their team are adaptable in their financing approach, yet they always begin with the end in mind.  

In order to qualify for a property secured loan from Spartan Finance, your minimum finance amount needs to be R1m, you’ll need to be operating for 3 or more years, and have an annual turnover from R5M to R10M. To apply for a property backed loan with Spartan Finance, you’ll need collateral as a tangible asset, which means you can liquidate it if needed, in this case a property.  

Chester Finance

Over the past 25 years and counting, Chester Finance has successfully designed effective financing solutions. They believe in investing in relationships, in order to create partnerships that facilitate growth. Chester Finance offers tailored business finance with a term of between 1 and 5 years, secured by a first mortgage bond over your property (this is a bond that covers future debt). If you have unencumbered property, they are also able to offer bridging finance for a term of up to 12 months, using the unbonded property as security for the loan.

Their team are also able to provide flexibility when it comes to your repayment terms, and they will ensure that the repayment terms are matched with your incoming cash flow. For example, this could mean that your loan is structured on an interest-only basis for a period of time, or it could incorporate a residual value as a means to minimise the immediate cash flow implications of the loan.  

To qualify for property finance from Chester Finance, your minimum loan amount must be R2 million, you will need a first covering mortgage bond over the property, and you must be able to service the monthly interest.  


With their focus on servicing SMEs and entrepreneurs, CorpFin’s finance solutions aim to unlock potentially high-yielding opportunities that are not typically supported by traditional banks. Part of their offering is essential short-term financing, with repayment terms of three to nine months. They are focused on providing growth opportunities for established and profitable enterprises.  

Their asset-based financing options provide businesses with working capital and term loans, where business owners will use their property as collateral. CorpFin highlights that the location, demand and saleability of your unencumbered fixed property can influence the value of the loan and determine the eagerness of the financier to grant a loan against it. If you want to take out a property backed loan and don’t have time on your side, then CorpFin is a go-to, with the promise of a fast turnaround time, and loan amounts between R500 000 to R30 million.  


Peace of mind is top of mind for the team at New Heights Finance. This alternative lender has plenty of experience when it comes to bridging loan solutions for almost any business or private need. One of their solutions is a business loan against a bond-free property. If you own a bond-free property and need a loan, then their team will come to the rescue.  

To qualify for a property backed loan with NHFinance, your property will need to be worth more than R1.5million and your business will need to be a registered legal entity. Their property secured loan amounts start at R250 000, and a maximum of 50% of the open market value of the property is generally lent. The maximum repayment period for this kind of loan is 12 months.  

Assetline Capital

A specialist boutique short-term secured asset lender, Assetline Capital considers a wide range of properties in order to maximise the loans advanced to business owners. As a South African lender, their team take a personal approach to business lending, and as entrepreneurs themselves, they like to ‘think outside the box’ when assessing each and every application from business owners. They pride themselves on transparency and giving their clients clear and timely communications.  

With a property term loan from Assetline Capital, you will be able to borrow a maximum of 50% of the open market value of the property. Typical loan terms are 6-12 months, and at the end of your loan period you’ll be able to choose between repaying your loan completely and reclaiming your property, or you can choose to extend the loan facility. Staying true to their word on transparency, they provide all the finer loan details upfront: with interest rates ranging between 2.8% and 4% depending on the property value, and the property value must be over R1.5million.  

Berkeley Finance  

The team behind Berkeley Finance, have a strong track record when it comes to helping countless small businesses grow. Although their loans are short term, they are proud to say their vision isn’t, and with plenty of experience in the asset-based lending game – they know what they are talking about. Berkeley Finance guarantee that for any loan approved by them, you can feel secure knowing they’ve done enough vetting to know that you can repay the loan.  

A property-secured loan from Berkeley Finance, is fast and flexible, where you can avoid the red tape and bypass traditional banking institutions. As a secured lender in South Africa, their loans are designed to help businesses when they need cash to invest in their growth. With a secured loan from Berkeley Finance you can borrow up to R5million per transaction over a maximum repayment period of 24 months. With their property backed loans there are no hidden fees, the loan terms will be agreed upon based on your property value, your business management, and your ability to repay comfortably.  

Rodel Bridging Finance

As experts in bridging finance, the Rodel Bridging Finance team have over 20 years of experience in the industry – and still love what they do. They strive to create innovative solutions for business owners, by accessing funds tied up in unbonded property. With over 130 000 transactions under their belt, they are determined to build meaningful relationships with their clients.  

If you take out a property backed loan with Rodel, it will need to be secured by an unencumbered property – in most cases your property. These short term loans are typically up to 6 months long, and the maximum transaction value will not exceed 40% of the property value. What sets Rodel apart from traditional banks, is that they will look at your existing deals and your assets – not just your business credit score. To qualify for a property secured loan from Rodel, you’ll need to do an evaluation of your property at your own expense, with a minimum loan amount of R500 000.  

Prevance Capital

As a privately owned specialist lender, Prevance Capital offers property bridging and short term loan finance. They’ve been operating nationwide since 1992, and their philosophy is to always operate with integrity towards their clients, employees, shareholders and associates.  

If your business has the opportunity to profit from a transaction but doesn’t have the means right now, then a short term secured loan from Prevance Capital might be the answer. Their loan amounts start at R500 000, with a maximum of R5 million. To qualify for a property backed loan from Prevance Capital, you’ll need to own an unbound property worth double the value of the requested loan amount. You’ll also need to demonstrate a credible repayment strategy prior to approval, and that you’ll be able to pay back the loan in a couple of months.

Frequently Asked Questions about property backed loans

How Does a Property-Backed Loan Work?

A property backed loan is a medium to long-term loan that uses a fixed repayment period. To qualify, you need to have a form of security to offer the lender, in return for them lending your business money. That security is in the form of a building or piece of land that you or your business owns. You then use that land as a form of collateral, so that should you default on your loan repayments repeatedly, and the loan goes into delinquency, the bank or lender has some recourse and can then sell that property to recoup the costs of the loan.

How Much Does a Property Backed Loan Cost?

A property backed loan's interest rate can range from prime interest rate (currently 7,5%) through to prime + 10%. If the loan is getting any more expensive than that, you may want to reconsider your lender, or options.

What factors affect the cost of a property-backed loan?  

The cost of the loan depends on a number of factors. These include:

  • Monthly turnover: How much you make every month.
  • How long you've been in business: Generally, 1 year minimum is required.
  • The value of the asset: If it is a more valuable asset, the finance might be cheaper.
  • The type of asset: If it is a commercial property that is hard to liquidate, the lender may view this as a potential risk, and make the finance more expensive.
  • Credit score: This plays little role in the credit decision. Some lenders may consider a credit score, but most are satisfied if your property is of sufficient value.
  • Lender: Some lenders are primarily focused on speed of funding. This means they will take more risk, and accept less documentation in the application so that it gets processed fast. However, this normally means the loan is slightly more expensive.

In general, a good rule of thumb when it comes to pricing: The more risk the lender takes on, the more expensive the loan will be. That is why an unsecured loan is more expensive than a property-backed, secured loan.

This is the reason why a property-backed loan process is slightly longer than an unsecured loan.

What can you use a secured loan for?  

Here is a list of some of the common reasons an SME business may want to use an property-backed loan:

  • Growth capital: Cash to grow your business through new ventures, or increased investment spend.
  • Upgrading business premises: Use the loan to upgrade your facilities or property.
  • Buying new business premises.
  • New business venture.
  • Acquiring another business.

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